Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

LKCE18 - Márcio Sete - Fit for Purpose Framework - distilled theory and practice

55 views

Published on

I started reading Fitness for Purpose in the exact moment lots of discussions around market and product segmentation was happening at Elabor8. Traditional marketing segmentation approaches were not resonating with me, and I felt like doing to check the box. The ideas brought in the book were so compelling that I’ve decided to give them a go and trying stuff out as I was reading.

This talk will share this case study with distilled theory and practice of:

- Design + Implementation + Service Delivery of professional services
- Market segmentation by customer purpose
- Fitness Box Score and F4P Cards
- The four types of metrics

Published in: Data & Analytics
  • Be the first to comment

  • Be the first to like this

LKCE18 - Márcio Sete - Fit for Purpose Framework - distilled theory and practice

  1. 1. Fit-for-purpose Framework distilled theory and practice Principal Consultant & Head of Technology Services marcio.sete@elabor8.com.au Marcio Sete @marciosete
  2. 2. @marciosete
  3. 3. Market segmentation by customer purpose (not demographics) The four types of metrics: fitness criteria, health indicators, improvement drivers, and vanity metrics The three dimensions of products and services: design, implementation, and service delivery How to assess fitness of your product or service using F4P Cards and Fitness Box Score Fit-for-Purpose Framework @marciosete
  4. 4. #1 – THE THREE DIMENSIONS OF ….PRODUCTS AND SERVICES
  5. 5. Fit-for-purpose components @marciosete
  6. 6. Consulting services: the three components Design Service catalog and intended approach: ● Capability Assessment ● DevOps Squads ● Practitioner Coaches ● The Learning Dojo @marciosete Implementation Consultants: ● Technical knowledge, skills and experiences ● Human skills ● Ability to execute the intended approach Service Delivery Customer experience with: ● Sales and pre-sales ● Lead time to answer ● Technical Fit ● Cultural Fit ● Customer Service ● Troubleshooting ● Value added stuff
  7. 7. To be fit-for-purpose for different customers, design, implementation, and service delivery must be sufficiently good. #1 – THE THREE DIMENSIONS OF PRODUCTS AND SERVICES
  8. 8. #2 - MARKET SEGMENTATION BY CUSTOMER PURPOSE
  9. 9. different people & contexts → different purposes → different selection criteria → different purchasing decisions → different vendors @marciosete
  10. 10. Fitness for purpose review @marciosete
  11. 11. The best stories came in this order ■ Observation of facts (from current customers) ■ Rich and contextualised speculation of future (potential customers) ■ Contextualised speculation of future (consulting community) ■ Poor speculation of future (myself behind my screen) @marciosete
  12. 12. Technology Strategy & Advice Software Lifecycle Improvements Capability Uplift Delivery + Coaching Staff Augmentation Market segmentation by customer purpose @marciosete
  13. 13. Defining the strategy for each segment ■ Target? Non-target? ■ Protect, encourage and grow ■ Seek improvements ■ Be neutral ■ Switch-off @marciosete
  14. 14. Same persona have different consuming identities when fulfilling different needs. Each identity composes a different market segment which has different selection criteria and thresholds. #2 - MARKET SEGMENTATION BY CUSTOMER PURPOSE
  15. 15. #3 – F4P CARDS & FITNESS BOX SCORE
  16. 16. Template for Fit for Purpose survey 1. Tell us why you selected [our product or service]? List up to 3 reasons 2. For each reason, purpose or objective, please indicate how “for for purpose” you found this service? 5. Extremely 4. Highly 3. Mostly 2. Partially 1. Slightly 0. Not at all 3. For each reason, purpose or objective, please state specifically why you gave your rating for question 2. @marciosete
  17. 17. Sample of a F4P Card @marciosete
  18. 18. Interpreting the scores ■ Scores of 4 and 5 Satisfied - Fit for customer purpose ■ Score of 3 Neutral - Acceptable but not delighting ■ Scores of 2 or below Dissatisfied - Unfit for customer purpose @marciosete
  19. 19. 70/ 20/ 10 (30) 14/ 17 70% thinks our service was fit-for-[their]-purpose 20% thinks our service was neutral or mediocre 10% thinks our service was not fit-for-[their]-purpose Thirty purposes have been identified People invited to answer the F4P Cards People who answered the F4P Cards @marciosete Fitness box score
  20. 20. @marciosete
  21. 21. @marciosete
  22. 22. @marciosete
  23. 23. F4P Cards and Fitness Box Score are simple tools to capture customer purposes, level of fitness, and customer narratives. #3 – F4P CARDS & FITNESS BOX SCORE
  24. 24. #4 – THE FOUR TYPES OF METRICS
  25. 25. The four types of metrics Healthy Indicators with a healthy range Improvement Drivers with a target Fitness Criteria (KPIs) with thresholds Vanity Metrics @marciosete
  26. 26. Fitness Criteria (KPIs) with thresholds ■ What makes a customer selects you, are your Fitness Criteria and they should be your KPIs — Key Performance Indicators ■ Minimum threshold: below which the product or service is unfit-for-[the customer]-purpose. ■ Exceptional performance threshold: Your differentiation and perhaps an enabler of market disruption. @marciosete
  27. 27. Some fitness criteria are universal ■ Lead time and its predictability ■ Quality and its predictability ■ Conformance with models, frameworks, standards and regulatory requirements ■ Price and affordability @marciosete
  28. 28. Market segments Daily Rate Lead time for mobilisation Level of expertise Proof Points Technology Strategy & Advice $$$$ < 4 weeks ● Holistic view ● Knowledge in Software Engineering, Lean, Agile, Product & Design, Delivery, Organisation Design ● Good stories to tell ● Consultant CV including experience in transformations ● Consultant thought leadership ● References ● Case Studies Software Lifecycle Improvements $$$ < 4 weeks ● Sound experience in the subject of the engagement ● Can not blink ● Expected to bring options and tradeoffs ● Consultant CV including deep expertise in the subject of the engagement ● Consultant thought leadership ● References where they have delivered similar solution before ● Case Studies Delivery + Coaching $$ < 4 weeks ● Need to check some boxes and be operational from day one ● Nice if brings some extras ● Can learn on the job ● Consultant CV including their overall experience Staff Augmentation $ < 2 weeks ● Need to know the core / basics to start working ● Consultant CV including overall experience
  29. 29. Healthy Indicators with a healthy range ■ Don’t indicate selection but are something that you need to monitor as it might give you early warning of problems that will eventually manifest in a failure to be fit-for-purpose ■ They have a guide range but no ideal value, threshold, or target @marciosete
  30. 30. ■ Improvement drivers are important, but they don’t indicate selection, nor do they have a direct relationship with customer satisfaction ■ They have a target value to be achieved over time ■ When the target is reached, improvement drivers are usually abandoned or changed into a health indicator. Improvement drivers with a target @marciosete
  31. 31. Vanity Metrics ■ Vanity metrics make us feel good, where more is always better ■ Have no meaningful impact on decision making, don’t predict desirable outcomes or customer satisfaction, don’t drive improvement, don’t have a target, and don’t indicate general health. @marciosete
  32. 32. Consulting services: the four types of metrics @marciosete Fitness Criteria ● Daily rate ● Lead time for mobilisation ● Consultant expertise and human skills Healthy Indicators ● Revenue ● Ebit ● Employee engagement ● Client satisfaction Improvement Drivers ● Utilisation ● # case studies ● # strategic engagements Vanity Metrics ● # Engagements ● # Employees ● # Conferences sponsored ● # blogs ● # Meetups
  33. 33. Homework: Look at your metrics ■ How would you classify them based on the options above? ■ Can you identify thresholds for your fitness criteria? ■ Can you identify targets for your improvement drivers? ■ Can you identify ranges for your general health indicators? ■ Can you align your improvement drivers with your fitness criteria? @marciosete
  34. 34. To understand what your customers expect and what keeps them coming back again and again, you need to understand why they choose your product or service. You need to understand their purpose. #4 – THE FOUR TYPES OF METRICS
  35. 35. what I want you to remember...
  36. 36. @marciosete Same persona have different consuming identities when fulfilling different needs. Each identity composes a different market segment which has different selection criteria and thresholds. To understand what your customers expect and what keeps them coming back again and again, you need to understand why they choose your product or service. You need to understand their purpose. To be fit-for-purpose for different customers, design, implementation, and service delivery must be sufficiently good. F4P Cards and Fitness Box Score are simple tools to capture customer purposes, level of fitness, and customer narratives.
  37. 37. Principal Consultant & Head of Technology Services https://www.linkedin.com/in/marciosete https://twitter.com/elabor8 https://twitter.com/marciosete https://medium.com/@Elabor8 https://medium.com/@marciosete Thank you! Danke dir! www.elabor8.com.au marcio.sete@elabor8.com.au Marcio Sete

×